Bank of Baroda - Q4 Results

The bank's net interest income (NII) grew 43.0% on back of strong growth in advances (34.9%), improvement in C/D ratio from 70.2% in Q4FY08 to 74.8% in Q4FY09 and improvement in liability mix.

Its net profit grew whopping 172.3% on back of robust NII growth (43.0%), strong traction in non-interest income (53.9%), lower growth in operating expenses (17.4%) and 35.5% decline in provisions & contingencies. Asset quality of the bank witnessed improvement both YoY as well as QoQ. Both gross and net NPA declined in absolute as well as in percentage terms.

The stock is a re-rating candidate due to improvement in its return profile; consequently, BoB remains one of preferred pick in the banking sector space.